Jefferies Financial released a report on August 21st, stating that China Telecom's second-quarter service revenue growth slowed from 5% in the first quarter to 3.7%. In the first half of the year, service revenue increased by 4.3% year-on-year, showing stronger resilience than expected overall. Net profit during the period increased by 8.6%, dragged down by higher growth in depreciation and amortization. The bank pointed out that China Telecom's capital expenditure in the first half of the year increased by 14% to 47 billion yuan, and it will follow the earlier target of annual capital expenditure of 96 billion yuan, indicating a year-on-year decrease of 2.9%. The bank believes that the group's capital expenditure will decline in the near future, driving its cash flow to continue to rise. The bank raised China Telecom's target price from HK$5.45 to HK$5.83, maintaining a "buy" rating, and stated that the performance is resilient, reflecting its steady management.